As overall market returns were quite strong over the last year, we’ve recently seen the market correction many analysts have been expecting. On Wednesday, June 19th, Federal Reserve Board Chairman, Ben Bernanke, announced that the Fed’s $85 billion bond buying program could start to wind down by year-end if economic data remained strong. The program could be completed in entirety by mid-2014. Worldwide markets immediately sold off on the news. On Thursday, the Dow Jones Industrial Average closed down 353.87 points, or 2.34 percent. As the Fed begins tapering its bond purchase program, concerns arise over potential rising interest rates on sensitive asset classes. Among those U.S. sectors hit hard on Thursday were homebuilders, down 6.7 percent on concerns of higher borrowing rates. The S&P 500 has now fallen 4 percent from its all-time closing high on May 21 of 1669.16. As we progress through the year, it will be interesting to see whether this market correction provides an opportunity for investors to enter the market. As always, we welcome your calls if we can be of service to you. We wish you all an excellent summer among family and friends!
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